Benn Steil's latest op-ed in the Wall Street Journal, co-authored with Dinah Walker, explains why the ECB's anticipated foray into more aggressive monetary stimulus next week won't have any significant effect on the availability and cost of private-sector credit. The ECB believes that its ongoing bank stress tests will help revive the eurozone's moribund banking industry, but they argue that the tests are counterproductive without a mechanism in place to assure sufficient recapitalization of banks that fall short—as there was in the United States in 2009.
Peter R. Orszag argues that new legislation giving health-care providers full responsibility for patient care, costs, and outcomes is an encouraging step toward increasing the quality of care supplied per Medicare dollar spent.
Peter R. Orszag argues that the United States will be unable to improve the efficiency of its health-care system unless it more aggressively pursues research into the comparative effectiveness of medical treatments.
Benn Steil's latest op-ed in Forbes, co-authored with Dinah Walker, shows that the Fed's incorporation of the unemployment rate into its forward guidance has been a failure. Such poor communications could roil the markets as the Fed shifts policy from accommodation to tightening.
Authors: Peter R. Orszag, Senator Sheldon Whitehouse, and Ezekiel Emanuel Bloomberg.com
Peter Orszag, Ezekiel Emanuel, and Sheldon Whitehouse argue that the success of the "tech surge" in improving HealthCare.gov should inspire President Barack Obama to mobilize a similar effort to reduce health-care costs.
Benn Steil's latest op-ed in the Wall Street Journal, co-authored with Dinah Walker, shows that developing countries running large current account deficits have seen their economies whipsawed by volatile capital flows triggered by unconventional monetary policy at the Fed and elsewhere in the developed world. The clear lesson for such countries is that they should pursue policies which constitute "currency manipulation" in Washington, thereby setting the stage for rising global trade tensions.
Peter Orszag and Cass Sunstein write that governments should use "nudges"—policies that harness economics and psychology to encourage certain behaviors—to deliver major benefits without imposing big costs on the public or private sector.
Peter Orszag writes that the Reserve Bank of New Zealand's limits on high loan-to-value mortgages are a model for the kind of actions the U.S. Federal Reserve could have taken to manage the U.S. mortgage market and reduce the risks that the housing bubble posed to the financial system.
In Money, Markets, and Sovereignty, the authors present a fascinating intellectual history of monetary nationalism from the ancient world to the present and explore why, in its modern incarnation, it represents the single greatest threat to globalization. More
In The Closing of the American Border, Edward Alden goes behind the scenes to tell the story of the Bush administrationís struggle to balance security and openness in the wake of the September 11, 2001, terrorist attacks. More
In this report, Benn Steil shows that the financial crisis is the inevitable bust of a classic credit boom, and explains how monetary, taxation, and home ownership promotion policy combined with other features of the financial system to fuel an unsustainable buildup in debt. He recommends significant reforms to reverse the debt financing bias and make the system more resilient to falls in asset prices. More
In order for policymakers to tackle todayís global economic crisis, this report argues, they must go beyond bailouts and stimulus packages and focus on one of the crisis's root causes: imbalances between savings and investment in major countries. More